Putin hands over airport to Russian administration
Russian President Vladimir Putin has ordered a new operator structure for Pulkovo Airport in St. Petersburg, forcing the major German shareholder Fraport out of the business. Fraport had held 25 percent of the previous operating company. Putin justified the move with "unfriendly actions of some foreign states and international organizations", as stated in his decree.
Following the start of the Russian war of aggression against Ukraine, Western companies withdrew en masse from the market of the giant empire. Many sectors of the Russian economy are subject to Western sanctions as a result of the war. In recent months, Putin has repeatedly ordered forced administrations in order to secure the operation of factories and companies as well as jobs.
The new measures regarding Pulkovo International Airport were taken "in connection with the threat to the national interests and economic security of the Russian Federation", it was reported. Accordingly, 100 percent of the shares of the Northern Capital Gateway (NCG) consortium, which is registered in Cyprus via the company Thalita Trading Ltd, will be transferred to a new holding company established by the Russian government. The Russian shareholders retained their rights, the foreign investors did not.
Fraport had declared its intention to withdraw from the operation of the airport after the start of the war. According to Fraport, the investment in St. Petersburg was "suspended". In September, the head of the Russian bank VTB, Andrey Kostin, declared that the parameters of Fraport's exit should be determined by the end of this year. He had stated the value of the Fraport share at 111 million euros. A total of 13 different companies belonged to the previous holding company NCG, which was awarded a 30-year contract to operate Pulkovo Airport in 2010.
- Due to the "unfriendly actions of some foreign states and international organizations," as cited by Vladimir Putin, air traffic at Pulkovo Airport in St. Petersburg may be impacted, as the major German shareholder Fraport is being forced out of the business.
- Amidst the ongoing conflicts between Russia and Western countries, particularly during the Russian war of aggression against Ukraine, numerous Western companies, like Fraport, have ceased operations in Russia, leading to job losses and economic instability.
- Despite Fraport's decision to withdraw from Pulkovo Airport operation after the war's commencement, citing a suspension of investment, Russian President Vladimir Putin has seized control of the airport by transferring 100% of the shares from the NCG consortium, previously majority-owned by Fraport, to a new government holding company.
Source: www.dpa.com
